Federal government to intervene in rail labour dispute, force binding arbitration

Canada's Labour Minister Steven MacKinnon is intervening to end a work stoppage that saw this country's two largest railways grind to a standstill Thursday, by forcing the parties into binding arbitration.

Announcing the major move from Parliament Hill, MacKinnon said he is invoking powers under Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board to "assist the parties in settling the outstanding terms of their collective agreements by imposing final binding arbitration."

"Canadians must be assured that their government will not allow them to suffer when parties do not fill their responsibility to them at the bargaining table, especially where worker and community safety is at stake," he said, following a day of key meetings with stakeholders.

MacKinnon has also ordered the board to extend the term on the parties' current collective agreements until new deals have been signed, and is calling for operations on both railways to resume "forthwith."

In a first-ever simultaneous work stoppage, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out Teamsters Canada rail workers early Thursday morning after months of failed negotiations.

The unprecedented labour dispute snarled supply chains and complicated commutes for thousands across Canada.

As of 4:40 p.m. ET, when MacKinnon announced he'd be stepping in, an agreement between the parties remained "elusive," the minister – just over a month into the job – told reporters.

"Collective bargaining negotiations belong to these parties, but their effects and the impacts of the current impasse are being borne by all Canadians," MacKinnon said. "As minister of labour, I'm using my authorities … to secure industrial peace and deliver the short- and long-term solutions that are in the national interest."

It remains unclear when exactly operations will resume, though the minister expressed hope it will be within a few days, given the massive economic stakes and that millions of Canadians rely on these railways daily.

Federal intervention comes after Prime Minister Justin Trudeau said earlier today that the government was "on it" and would have more to say "shortly" on what it is doing "to make sure that the right solution is found quickly for the economy."

"We're taking it so seriously. The minister is engaged directly. We are not taking this lightly, obviously, because Canadians across the country are worried about it," Trudeau said Thursday in Sherbrooke, Que., in front of a manufacturer that would have been impacted if the shutdown continued much longer.

Heading into crunch time, MacKinnon said the federal government's position remained that the best outcome would be a negotiated agreement reached at the bargaining table, while noting the issues between the two sides were "significant."

CN had said that without an agreement or binding arbitration, the railway had "no choice" but to proceed with a "safe and orderly shutdown," while the union said that safety-related issues and a "forced relocation scheme" remained its focus.

As contract talks continued in Montreal and Calgary and picket lines went up, business groups, impacted industry leaders, as well as some premiers pressed the federal government to act given the critical transport lines – when running – carry more than $1 billion worth of goods each day.

Avoiding back-to-work legislation for now means the federal government won't have to recall Parliament and can pause on considering where it would secure political support to pass such a bill.

NDP Leader Jagmeet Singh reiterated Thursday his party's long-standing opposition to back-to-work legislation.

Appearing alongside some of the more than 9,000 engineers, conductors and yard workers who were locked out, Singh said he didn't want to see any federal interference.

It didn't take long for Singh to slam the Liberals' decision.

"Justin Trudeau has just sent a message to CN, CPKC and all big corporations—being a bad boss pays off. The Liberals' actions are cowardly, anti-worker and proof that they will always cave to corporate greed, and Canadians will always pay for it," he said in a statement.

While the Bloc Quebecois was noncommittal on what the federal government should do, Conservative Leader Pierre Poilievre, who is trying to court working-class voters – and backed the Liberals' recent anti-scab law – has avoided commenting on the situation.

Ahead of MacKinnon's announcement, former Conservative labour minister Lisa Raitt said the Conservatives didn't need to weigh in until the federal government announced its next steps.

This is a developing story, check back for updates...